Means for cashing sales accounts.



No. 704,168. Patented July 8, I902. F. E. ANDERSON.

MEANS 'FOR CASHING SALES ACCOUNTS.

(Application filed Nov. 29, 1901.) (No Model. 4 Sheets$heet I.

SERIES :7 N9 $216 @gw%% %M A?f /f0/.

Bnusm UF A.B.WEIULEN GD 0 MANUFACTURERS & MERCHANTS HIDE! BROADWAY.

v @aa/QQ TERME 6 SERIEEIg M92226 ma/00 Tl'us BM 15 payable To The B Make ched s 'pcu a to order f MANUFAEFURERE a2 MEREHANTE C-D-B and mm meet- 01 4mm BROADWAY.

VIA 0141a TERMS 7.

24 4 /5&M 2/47 W 0. w 7&1 m

WITNESSES: INVENTOR 4 Sheets-Sheet 2.

MMEREIAL GU. n our name and slead, bul lo ills own use power, herel y rali= lly do by virlile i ll ignalel lgy llie E F Patented July 8, I902.

grow due upon the some or appoinl said E.F. ED

r, compromise or discharge lhe whole orany parl purpose in do all aclis and lhings necessary persons lo subslilule with like ny invoices or bills rendered b v us for lhis accounl re payable al lne bank ofdeposil des A.B.WIJEILEN CD zelfifiLuujglugLfljhim.

F. E. ANDERSON.

MEANS FOR CASHING SALES ACCOUNTS.

(Application filed Nov. 29, 1901.)

(upon lhesame being paid to lhe credil of our annual Willi lhe [1D,BANK of NQLUYOlli) have bargained,solcl, assigned and lranslerred and by lhese sign and lransfer unlolhe EFL COMMERCIAL BI] ils successors and assigns, liie claim or accounl sel forlli in die slalemenl on lhe reverse side hereof, andllie righl lo collecl andreceive all moneys due and lo n q all lhal our said dllorney or ii's siilislilules shall lawfii nlee lhal lhis accounlsoassignel is a bona fidesale and a oorred acoonnlior.

n llieir face lhal ihey a COMMERCIAL BU Jr; Wdizess lllgereof we have lierelinlo selour-liands and seal lhis 44*a7ay yew/701.

l i I e linear all lllen big lldesfiresenfi, Thai welLBlNUULEN ED. for value received llllllllllll Weherelw guarra y us by allowing llie same lo be deduded from inlure advances or by paymenl of the am (N o M o d e l presenls do bargain, sell, as

sales lherein sel forlh; and we hereby conslilule and our hue and lawful allorneg, irrevocably iorus Mali and benefil, lo sell, assiqndransfei; sel' ore of lhe aforesaid claim-or accounl, and forllial or proper in lhe premises and one or more fi ing and confirmi l'lplrpol.

goods aoliially sold and delivered and aooepled, and dial any claim or dednclions allowed will he re funded b olinl oi'sucli oleduclions in cashand dial a have slaled L BY Q MATTORNEY H.3UDZZMWE7F DD.

INVENTOR WITNESSES:

Patented July 8,- I902.

F. E. ANDEBSUN.

MEANS FOR CASHING SALES ACCOUNTS.

(Application filed Nov. 29, 1901.)

(No Model.) 4 Sheets-Sheet 3.

APPLICATION FDR LIJAN Nu. 4W mwYunKjgzfii fhm 190/.

CD. BANK EENTLEMEN: As per schedule, below, please'find herewith sales ac counTs, which it is proposed To assign and make payable to you, amounting To Gross $1761M NL$ upon which we ask for aloan of ,fjjlfifio be placed to The cre= (lit of our accounl.

Bespeclfully E.F. COMMERCIAL Bl]. I I 6 3'y--J-ll.lll. M1T I I Name of Deblbr (irossAmounI NoTAmmmT 4 Zgg 13 7%; 1/2 j' l [lj i *ilfl fa I Q 23 401m- 90c 17M m $06 M.

flmfiedfiorwm-a, 17M Maw INVENTOR WlTNESSES:

m flank/A4 BY MQMW%. fiiq.

MAW

No. 704,168. Patented July 8, I902.

F. E. ANDERSON. MEANS FOR CASHI NG SALES ACCOUNTS.

(Application filed Nov. 29, 1901.) (No Model.) 4 Sheets-Sheet 4.

'tinon otb men on these a e, thatwethe E.|-'. EDMMEREIAL am.

doing business in Newtbrh titg,NewYbrh,for value reoeived, have bargomedsotd, assigned and transferred, and by these presents do bargoinsett, assign and transfer, urdfo A.B. BANK the claims or oecounts described or referred to in the statement on the reverse side hereof, fordieaggregate sum of heretofore assigned to us as more fatty up pears by assignments endorsed on each otsaid accounts, and the right to cottectand receive oltrnoneys due, and to grow due, asprovided in said assignmentsto have and tohotdthesame unto said A, B BAN K its'successor, snccessorsoros signsfor its and their benefit, as and forcottaterat security for the payment at our cer= tain obligation for $Zdfi14datedMjfi19o1 gan on demand. We 11 hereby guarantee that said claims or accounts will be paid in fillt on the due dates there of respectively, and that the some have been insured as per poticy deposited with, and assigned tasaid EF BIJMMERDIAL till-,as furtherseourity. And we hereby constitute and appoint said A. B .BANK our true and towtnt attorney irrevo= cabte, for us and in our name and stead, but to its own use and benefit, to cotteot, i, sett, assign, transfer and set over the whote or any part of the aforesaid claims or accounts, and attrnone vs due, and to grow due,therean, and to enforce the provisions of said assignments to us and for that purpose to do alt acts and things necessary or proper in the premises, and one or more persons to substitute with like power; here by ratifging and confirming att that our said attorney or its substitute or substt= tutes shott do by .virtue thereof.

IN WITNESS WHEREUF, we have hereunto set our hand and seat this/#1901 E.F. EDMMERBIAL DI] the presence of ju w WITNESSES: INVENTOR v BY W ATTORNEY UNITED STATES PATENT OFFICE.

FRANK E. ANDERSON, OF NEXX YORK, N. Y.

MEANS FOR CASHING SALES ACCOUNTS.

SPECIFICATION formingpart of Letters Patent No. 704,168, dated July 8, 1902.

Application filed November 29, 1901. Serial No. 83,974. (No specimens.)

T (tZZ whom, it may concern:

Be it known that I, FRANK E. ANDERSON, a citizen of the United States, residing at New York city, New York, have invented new and useful Improvements in the Means for Cashing Sales Accounts, of which the following is a specification.

Myinvention relates to a novel art or method of cashing sales accounts of merchants and the provision of means for practicing the same, comprising a new bankable collateral'secnrity.

The object of my invention is to enable a person or concern to cash sales accounts of merchants-that is, to provide the sellers of goods with ready money or credits payable on demand, against which checks may be drawn before the debts contracted by the sales of goods become due. The concern practicing my invention makes use of a series of commercial documents which constitute a novel collateral security adapted to be received by banks and trust companies as the basis for loans which supply the money or credits by which the sales are cashed.

I believe that my invention, besides being of value to those engaged in the business of cashing sales, is a benefit to the public, inasmuch as it creates a new collateral security and enables an extension of credits along conservative lines.

An understanding of myinvention will best be gained by reference to the accompanying drawings, in which- Figure 1 represents a bill of sale of goods sold and delivered bearing on its face a notice or statementthat the same is payable to the order of a concern other than the seller of the goods, which concern will be hereinafter designated, for convenience, the bank. Fig. 2 represents a duplicate of the bill of sale shown in Fig. 1, but without the notice or statement above referred to. Fig. 3 represents the reverse side of the duplicate bill of sale shown in Fig. 2 and exhibits the obligation to be signed by the merchant or seller of goods consisting of, first, an assignment of the account to the concern practicing my invention termed hereinafter the commercial company, or its assigns; second, a guaranty as to the bond fide character of the sale and as to any allowances thereon which may be made to the purchaser and that the bill rendered the purchaser shall have the statement or notice shown in Fig. 1. It also exhibits a certificate that the account is insured by'a policy in a company hereinafter termed, for convenience,the insurance company. Fig.

4 represents an application by the commercial company to the bank for, aloan, with a schedule of the sales accounts embraced in the application and in the assignment and obligation on the reverse side thereof. Fig. 5 represents the reverse side of the application shown in Fig. 4 and shows the obligation to be signed by the commercial company consisting of, first, an assignment of'the sales accounts scheduled on the reverse side, (shown in Fig. 4;) second, a guaranty of the accounts and that the same have been insured, &c.

-Referring to the drawings, A, Fig. l, is a bill of sale in ordinary form with the notice B attached thereto or printed thereon.

C, Fig. 2, is a duplicate of'A, but without the notice B.

D, Fig. 3, is the reverse side of G and bears the obligation E to be signed by the merchant or seller of the goods, which consists of the assignment e and the guaranty e. D also bears the certificate and guaranty F to be signed by the commercial company.

G, Fig. 4, is the application to the bank for the loan. It bears the application proper, H, to be signed by the commercial company and the schedule of sales accounts I, as shown.

J, Fig. 5, represents an obligation to be signed by the commercial company, consisting of an assignment K of the accounts enumerated in the schedule and a guarantyL of said accounts and that the same have been insured.

In practicing my invention the commercial company makes use of the above-described documents in the following manner: The merchant who is the customer of the commercial company is provided with the bills of sale A, containing the notice B, designating that the account is payable to the designated bank, which is the institution with which it is intended to place the collateral security as the basis for the loan. The merchant is also provided with duplicate bills of sale 0 with the assignment 6 and guaranty c. The blank certificate and guaranty F may or may not be on the bill of sale 0 when in the hands of the merchant. It is intended to be executed by the commercial company after the duplicate bills of sale 0 have been delivered by the merchant to the commercial company. The merchant fills out the original bill of sale A with the notice B thereon to accord with the terms of the sale, and the same is forwarded (preferably by the bank) to the purchaser of the goods whose debt is to be cashed. The duplicate bill of sale 0 is also filled out by the merchant who signs the obligation E, thus assigning the sales account to the commercial company, guaranteeing the bonafidc character and correctness of the account and providing against claims or deductions by the purchaser of the goods and that the bill of sale rendered the purchaser shall have the notice B. The duplicate bill of sale 0 having been filled out and executed by the merchant, as indicated, is delivered to the commercial company.

Where sales are cashed after a bill of sale has been sent the purchaser by the merchant without the notice 13 a confirmatory statement of the account is sent the purchaser by the merchant, the commercial company, or the bank containing the notice 13 to the effect that the account is payable to the order of the bank. Such a confirmatory statement may be sent the purchaser, of course, even though the original bill displayed the notice B; but in such case the additional statement is mere repetition or surplusage. Each sales account cashed by my method may be insured by a concern carrying on the now well recognized business of insuring credits. Usuallyt-heaccountsWillbeinsured by the commercial company; but they may be insured by the merchant. Naturally the compensation of the commercial company for cashing the sales account will be larger in instances where the commercial company pays the premium for the insurance than in cases wherethe merchant takes out the insurance and pays the premium. Each sales account may be separately insured; but it is more usual for the merchant or the commercial company to have the accounts covered by a blanket policy. The commercial company having received the duplicate bill of sale insures the account with the insurance company unless the same is already covered by a blanket policy or has been insured by the merchant. The commercial company then executes the certificate and guaranty F, lists the several sales accounts upon which a loan is desired on the schedule I, signs the application H, as indicated, and executes the obligation J, thus assigning to the bank the accounts enumerated and guaranteeing the accounts and that the same have been insured. The loan secured by this collateral may be made by the bank upon a note of the commercial company or otherwise. In practice a note is not required, the transactions being tomes numerous and being in the nature of an open account.

The statement 13 on the original bill of sale A is notice to the purchaser of goods or debtor that the account is payable to the bank,which receives the payment when due and made and credits the commercial company with the amount thereof. The commercial company avails itself of the loan from the bank to cash the sales accounts negotiated, as above indicated-2l e., to pay the merchant the amount of the sales accounts less commissions for its services. In practiceamerchant whose sales accounts are customarily cashed will have an account with the bank accepting the collateral security above set forth, and a credit will simply be transferred to the merchants account at the instance of the commercial company from the amount of the loan made to said company upon said security.

In simplest form my invention may be practiced without availing of credit insurance and directly between the bank, merchant, (or seller of goods,) and the purchaser of goods or debtor without the intervention of an in termediary, hereinbefore termed the commercial company. The merchant will in this case be provided with the original and duplicate bills of sale A and G, the notice B being on A. The merchant will sign the obligation E, thus assigning the claim by the assignment 6 and guaranteeing the important facts regarding the sale and the notice B, as indicated at c", Fig. 3. The further guaranty of the commercial company and the insurance of the sales account lends greater credit to the security, according to the responsibility of the commercial company and the insurance company.

I do not abandon the art, method, or process of cashing sales accounts or any part thereof here described and not claimed, but claim the same in a divisional application filed by me on March 28, 1902, Serial No. 100,389.

tVhat I claim as new, and desire to secure by Letters Patent, is-

1. The hereinbefore-described means adapted to be used in cashing sales accounts consisting of the combination of a bill for goods sold and delivered, a duplicate bill and an obligation of the seller of the goods on said duplicate bill consisting of an assignment of the debt, a guaranty of the bonafides of the sale, of the correctness of the account and that the seller will make good any claims or allowances or failure of payment and a state ment on the original bill of sale that said bill is payable to a determined assiguee.

2. The combination of a series of documents which together form a chain of bankable collateral, consisting of an original bill for goods sold and delivered made out to the buyer, which said ori inal bill bears upon its face the statement that it is payable by check to the order of a certain bank; a duplicate of said bill, which duplicate contains an assign ment of said account, together with a guaranty by the seller of the bona fides of the sale, of the correctness of the account, of the delivery and acceptance of the goods, and a further guaranty that the seller will make good any claims or deductions, or allowances made by the buyer from the amount of said bill, or his failure to pay the same when due; a certificate upon said duplicate sales account that the sale is insured under the terms of a spe cific policy of credit insurance referring thereto; a second assignment by the first assignee of said account to the bank to which the original bill is on its face made payable, which said second assignment contains a further guaranty by the first assignee that said sales account will be paid when due,said series of documents constitutinga chain of guaranteed collateral upon which a loan is made by said bank.

3. The herein-described collateral security consisting of the combination of a bill of sale displaying a notice that the same is payable to a lender of money; a duplicate bill of sale containing an assignment of the account to an intermediary; a reassignment of the account and a guaranty of payment in full to the aforesaid lender of money.

4. The herein-described collateral security consisting of the combination of a bill of sale displaying a notice that the same is payable to a lender of money; a duplicate bill of sale containing an assignment of the account to an intermediary; a reassignment of the account with a certificate that the account is covered by insurance and a guaranty of payment in full to the aforesaid lender of money.

5. The hereinbefore-described means adapted to be used in cashing sales accounts consisting of the combination of an original and a duplicate bill of sale, the original displayin g a notice that the account is payable to the concern which shall advance money thereon,

the duplicate containing an assignment of the claim and a guaranty of its bonaficlc character and that the seller will settle allowances and claims made by the purchaser of the goods.

6. The hereinbefore-described means adapted to be used in cashing sales accounts consisting of the combination of an original and a duplicate bill of sale, the original displaying a notice that the account is payable to the concern which shall advance money thereon, the duplicate containing an assignment of 55 the claim.

7. The hereinbefore-described means adapted to be used in cashing sales accounts consisting of the combination of an original and a duplicate bill of sale, the original displaying a notice that the account is payable to the concern which shall advance money thereon, the duplicate containing an assi nment of the claim, a guaranty of its bona fide chara'c ter and that the seller will settle allowances and claims made by the purchaser of the goods, and a certificate that the sales account is insured.

8. The hereinbefore-described means adapted to be used in cashing sales accounts consisting of the combination of an original and a duplicate bill of sale the original displaying a notice that the account is payable to the concern which shall advance money thereon, the duplicate containing an assignment of the claim and a certificate that the sales ac count is insured.

In testimony whereof I, FRANK E. ANDER- SON, have signed my name to this specification, in the presence of two subscribing witnesses, this 25th day of November, 1901.

FRANK E. ANDERSON.

WVitnesses:

GEORGE D. MUMFORD, JOSEPH A. SrETsoN. 

